this is night by business report with tyler mathisen and susie gharib brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures. viking river cruises, exploring the world in comfort. ready or not, the dow having the worst weekly drop of the year. the s&p at it's lowest level in a month. this is the beginning of a stock market correction, or something less dire? >> social sizzlers, while the market may have cooled off, one

sector is red hot, social media but can the group keep trending in the eyes of investors. turmoil in egypt. big american companies halting operations in cairo, and as the violence escalates, it's putting a major defense firm's multi-billion-dollar deal in jeopardy. that and more tonight for friday, august 16th. another milestone on wall street today but not good. the dow posted the worst weekly decline for 2013 and not only the blue chip struggling, a lousy week. they closed in the red for the second week in a row. what continues to nag investors is conflicting reports about the economy, like today's news. a closely watched consumer sentiment survey fell sharply, but there were strong numbers from housing, and we'll have more in just a moment. so investors played it safe and sold stocks. the dow lost 30 points. the nasdaq slipped three, and

the s&p off 5.5 points. look the at the week, the dow and s&p tumbled 2%. in the barn market the yield on the ten-year treasury spiked. with stocks taking a tumble after shooting higher since the start of the year, the big question is this the full fledged correction so many on wall street were predicting? jackie dela jack jackie deorange looks. >> reporter: this trend raising some eyebrows on wall street with the concern that the long-awaited correction may be taking shape. here is jeremy segol of the what are the -- wharton school of business. >> it's in the rem of monthty. >> reporter: the worst performers, industrial, materials, and financials.

the best of the worst, include healthcare, the consumer discretionary group and consumer staples. many analyst and market observers have been calling for a correction for sometime but haven't been able to get the timing quite right. the fed has been able to keep the market momentum moving, and that had the bull saying this is another bump in the road. what is happening now is a little different especially if the yield on the ten-year rises hitting levels not seen in two years. if the fed backs off the bond buying program and yields rise, it could have a significant chilling effect on the market, especially defensive sectors that are sensitive to moves in interest rates. mcneil curry for bank of america merrill lynch says as rates push higher, so does the anxiety on the street. >> definitely, it is the push higher in interest rates leading to increase in anxiety in equities forcing them to correct to the downside. >> reporter: this leaves a lot of people asking, if the markets

are correcting, how big of a move will it be? time will tell. for "nightly business report,". home builders broke ground on more new homes in july. the trouble is increase was mostly a 20% jump in apartment buildings. while construction of more profitable single-family homes fell. permits for future construction fell slightly. shares of some of the nation's biggest builders were mixed today. lennar ended higher and rye lend, dr horton closed lower. an update on detroit's bankruptcy. the federal judge presiding over the biggest bankruptcy filing in u.s. history order add mediator to handle negotiations with the city's unions and two largest pension funds. the idea is to save money on litigation against the city and speed up a resolution of this historic bankruptcy. turning now to egypt. another day of violence and bloodshed as the military police

continue their assault on supporters of oust the president mohamed morsi. from cairo, we have more. >> reporter: a very tense cairo here tonight as supporters of ousted president mohamed morsi continue to clash with security forces, not just here in cairo but across the country. it started after the protesters called for a million-man march, a friday of rage after friday prayers, and that did materialize. what happened around the square area and also some of the bridges, a lot of people have been killed. the images we've seen are very disturbing, very bloody images and mass gunmen in operation with ak-47s entrenching in battle. we have developments from the kingdom of saudi arabia saying they stand with egypt against terrorism. it's a rapidly developing story

but that's the update for now. that turmoil in egypt still driving the price of oil higher, ramping up fears about production and supply disruptions out of the middle ea east. today crude rose up 13 cents to settle above $107 a barrel. the deadly violence in egypt is forcing some big changes in that country's economy. the egyptian stock market has been closed now for days and the central bank ordered all banks to be shut during unrest. now major international firms halted operations in response including general motors, say sue key and more. la keed martin is trying to figure out what happens next to the multi-billion-dollar fighter jet deal. >> reporter: here is home video from 2007 of egyptian f-16

flying over cairo. the jet nicknamed the fighting falcon is the aerial backbone for many u.s. allies flown by the u.s. air force thunder birds before see quest ration. >> the f-16 is the standard against every other fighter in the world is judged. >> reporter: now egypt turned guns on it's own people and the u.s. is reconsidering whether to supply it with more weapons. >> our traditional corporation cannot continue as usual when civilians are being killed in the streets. >> reporter: the hill is reporting a former pentagon official believes a billion-dollar deal to sell more f-16s to egypt may be quote, dead in the water. the defense department says quote this is a delay in delivery, not a termination. the program is not off. the defense department had already announce add delay of f-16 deliveries in july as the streets of egypt heated up but with this week's blood bath, president obama cancelled a

joint military exercise and defense sec tarpry chuck hagel warned the military that it's putting quote important elements of our long-standing defense corporation at risk. what does it mean to laquid? there is confusion. the sell of 20 planes is worth nearly $800 million and 14 have been delivered. the pentagon says only eight have been delivered and four are in limbo and the sale is worth twice what they say. regardless, for the last two quarters, laquid reported a drop in overall f-16 business as business shifts to the f-35. they believe the u.s. government may end up on the hook for the jets if they don't go to egypt as all foreign military sales have to be brokered by the pentagon. finding another buyer won't be difficult, the question is what price. coming up, this month has not been kind to the overall market but one sector would love the dog days of august to go on

forever. first, a check on today 's dow winners and losers. there's news tonight in the seemingly endless battle to take over dell. a judge in delaware ruled against billionaire carl icahn today dismissing the attempt to fast track a lawsuit against the

computer maker and bored over support for founder michael dell's offer to take the company private. this paves the way for a september 12th shareholder vote on dell's 25 billion-dollar buyout over and the counter offer which would keep part of it public. disney is turning to some of the best-known characters to boost sales. it will hit stores sunday featuring classic movies and tv show character like mickie mouse. the local news set network, the company plans to consolidate or close patch sites to cut costs and partner with other media firms in some locations. earlier this week, as you may have heard, aol's ceo tim armstrong took heat after he was recorded firing patch's creative

director during a meeting on the future of patch. shares of aol closed slightly lower today but august is a sizzling hot month for the company and several other media stocks. some of the biggest winners and what is driving shares higher. >> reporter: shares of pandora shot 6% higher today, thanks to a goldman sachs upgrade that dismissed competition concerns pointing to the promise of advertising growth. >> we had accelerating mobilization and starting to crack the biggest cost over hang on the company, which are the content royalty costs. >> reporter: pandora doesn't report until thursday but several other stocks gained on better than expected results. link inup and the stock hitting an all-time high monday after the analyst upgrade the the stock to buy on unexploited growth opportunities.

groupon benefits from signs that the local mobile strategy is working, but perhaps the biggest fact tomorrow behind the 8% gain this month is news that interim eric is permanently taking on the ceo role. >> we seen the stocks do well in part because they have nicely beaten numbers on the quarter but the big picture there is they have shown success in migrating the mobile transition. >> reporter: not just social media stocks bucking the market's downward trend. two traditional stocks are also having a good month. vicom is up 7% after 20% gain in net income and another 2 billion-dollar stock buy back while 21st century fox is up 27% after the outlook in the investor day presentations. august is continuing the fall since the end of july when it ditched efforts to pursue glamling in the u.s. and

revealed a weak outlook. facebook up 1% this month, it's up 40% with better than expected earnings on july 24th. for "nightly business report" i'm julia borston. the market focus segment tonight, trulia received positive comments from goldman sachs. reiterating buy rating on the stock and setting a price target of $48 a share. the stock rose more than 5% and settled at $46.10. shares of j.c. penney are lower after they came to agreement with the largest shareholder bill akman that will allow him to part ways. he can make up to four requests to the company to sell his stock, but he has to wait until at least tuesday, when j.c. penney is scheduled to report earnings. akman ended the dispute by resigning. the stock dropped 3% today. another retailer issuing a

profit warning. the latest joseph a. bank yesterday said second quarter results will fall short of expectations. the men's retailer said the campaign failed to rest nate with consumers and led to a decline in sales. the stock down 7% to $41 even. different story, green mountain coffee, the stock getting a lift and will join the nasdaq 100 index next thursday replacing life technology's. the stock rising 3% to $76.38. it has tripled over the past year. and shares of national technical systems soaring. it's a cash deal for almost 300 million dollar that works out to $23 a share. national technical is a testing and engineering services company. the stock rallied 38% to $22.89. the market monitor guest says despite the highs and lows in the market, he's maintaining

the 1700 target on the s&p 500. and here to tell us why is rich steinberg chief investment officer of steinberg global asset management. why shouldn't i be frightened this week, rich? it was pretty ugly out there? >> listen, tyler, the market had a big run. this was a 2% throw back. i think it feels a little bit more jumpy because investors were getting greedy and moving money out of bonds and into stocks because they saw bonds going down for the first time in ten plus years. so you have some people that put money into the market and then said oh, maybe i made a mistake. this is part of the process. the market will settle in here, 1700 would be roughly 15.5 times our $110 target. >> let's turn to some of the viewer questions, rich. we have michael from burkely, california wanting to get your views on sales for stock come. what do you think? >> this is a classic stock that

you have to differentiate between a great company, product and stock. great company, not a great stock trading at 138 times earnings of the share's earnings. the company has made some aggressive acquisitions that may not pan out. it's a stock that wouldn't fit our criteria. >> 138 times earnings. a lot has to go well. electric power, your position on that one, aep. >> it's a utility in columbus, ohio. really well-run company. the issue with the ten-year at over 2. 8%, utility out of favor and yields 4.5%. probably a name you can own but realize there will be someone in your face with interest rates. you could buy it at lower levels but probably not right now. >> let's turn now to some of your own recommendations, stocks that you are putting in your portfolio, the first one on the

list nov, national oil well varco. why do you like it. >> they are in the equipment business for drilling in both and oil and natural gas. the stock is trading at under 12 times next year's earnings. they have a great backlog and we have an $85 target. it fits the growth as a reasonable price. you're being able to buy a growth company at value prices. >> so let's move back to a question on the market. at $16.55 today, how close are we to the point you might add to the equity positions if you think we'll end the year at something at 1700, maybe higher? >> we've had a lot of cash come in with new money as well as we got defensive as our stocks reached targets and actually today and dividends and models. an entry point to ease in at the

$16.25 level and we picked up the evaluation support at 1600. we could be in a trading range of 1600 to 1700. it gives us pretty good entry points on the names we want to own here. >> what do you think investors should do, individual investors? >> i think it depends on the allocation. if you're a bond investor. you have to reduce the risk. the analogy i would give you is the muhammad ali, get in the corner, have cash around, take purges and come upswing as rates go to a level you can use the income to live your lifestyle. for equities, nearly think about in 2008 and bad markets how you felt about over exposure and make sure you're in balance. if you have cash, don't let frightens weeks down 2% take you off your game v. a strategy to put money to work at levels you think are reasonable. that's -- >> final -- final kwquick question, one sector that you

love and loathe right now? >> well, a sector that we don't have enough exposure to right now that i think we'll love soon will be europe. looks like they are coming out of recession. it's a wait and see. germany's numbers were good this week. france numbers were good. we're looking at european name ps for the first time since '08 and i think you have to be under weight utilitieutilities. we're way under weight. the utility sector and i think it's an area that you really have to be careful of and wait until yields come your way. >> do you guys own any of the stocks we mentioned? i guess we know you own oil well varco and the financial. how about others? >> we do not own the other two. >> okay -- >> i don't own any personally. >> thank you for a helpful conversati conversation. rich stein burg. blame it on the rain, many retailers do, using the weather

as an excuse for poor results but this time around it might be true. first, let's get a check on how commodities, treasuries and currencies faired today. it's been a rough week for investors in retailer stocks. the nation's big retailers have been conplaning they haven't been spending much and blame the weather. how much does bad weather really hurt sales or good weather help? courtney regan has the story. >> reporter: it's been a cool, wet summer for many regions of the country, and that's hitting retailers' bottom lines. recently, a number of retailers including macy's and walmart have sited cooler late sprang

and early summer weather for crimping sales of warm weather goods, resulting in larger than expected mark downs. good for consumers looking for a deal, but bad news for stores looking to build profit. >> it's certainly harder to sell shorts and swimsuits when shopper haves goose bumps from the temperatures outside. the cooler weather is welcomed by retailers hoping to sell sweaters at full price. the weather this fall will be more typical for the season, a far cry from last year's warm temperatures. a normal fall will be welcome news for the gap, macy's and kohl's. >> the met benefit won't be from the weather but sentiment change the cool weather caused, meaning all of a sudden when we wake up in the morning and have to put on a sweatshirt and early august, that translates into people thinking they need to get ready for back to school.

>> it's a little cooler out. start thinking about bringing out winter gear, but try to avoid it as long as i can. >> i can probably use a couple more long-sleeve shirts. >> i'm climate driven. >> until i'm freezing cold and have nothing to wear, when that happens i'll run to the store and do something. >> reporter: while kids going back to school hope for a late summer surge, retailers are anxious for thermometers to drop. the lower the temperatures in the fall, the higher the profit margins for retailers. for "nightly business report," i'm courtney regan. it looks like the race to be the first to come out with a wearable computer device is close to being won. reports say south korea's sam swung will reveal a wristwatch like device a few days ahead from a now product announcement from apple on september 10th. chevy cruze cars are being recalled there is a power ass t

assisted brake failure that caused low-speed cashes but no reported injuries. ford motors will send a bunch of checks to owners and lessees of the c-max hybrid sedan after the actual miles per gallon on the car, 9% lower than ford claims it to be on window sf stickers. oops. checks for $550 to owners and $325 for people that lease c-max hybrid and ford will change the claim from 47 mile as gallon down to 43. and now for car lovers and investors, a look at one of the world's premiere auto shows. in pep l beach, california is featuring a stunning array of antique and collectible cars. and with price tags that run in the seven figures, it's the latest sign that vintage cars are a red-hot investment

vehicle. robert frank has more. >> reporter: the stock market may go down but the prices for collectible cars are on a tear. here auction houses are expected to sell more than $300 million worth of cars. that would be an all-time record topping last year's 265 million and that's twice the precrisis record. >> it's been pretty hot. the values have been rising fairly consistently with certain areas and certain segments having excitement behind them at auction. >> reporter: more than 100 cars are expected to sell for $100 million and 10 million is the new million when it comes to these top cars. >> when people talk about million dollar cars, that's pretty easy now for me to understand. as hard as it is to imagine, now it's 10 million dollar cars and 20 million dollar cars and there are actually some 50 million dollar cars, while that was

impossible to imagine, i know people starting to talk about what will be the first 100 million dollar car. >> reporter: right now the wealthy are rushing into hard assets that not only bring in returns, but also have an added bonus. >> it goes down 3%. it's more fun. >> reporter: the car that's expected to set the highest price this weekend is a ferrara nart, 14 to $17 million. the battle for the top price will be with this car, a 1957, 250 gt that could fetch between 9 to $11 million. for "nightly business report," i'm robert frank, pebble beach. >> like carps like that. >> love them. >> we have a neighbor who has a restored checkered cab like you used to see in new york on the streets. beautiful piece of work. >> this is a completely

different -- >> this is a different level than that but a nice set of wheels, i tell you. >> and he doesn't charge me when he takes me for a ride, unlike a cab. >> have a great weekend everyone. >> that will do it i'm tyler mathisen, thanks for watching. we'll see you back here on monday. "nightly business report" has been brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures, viking river cruises, exploring the world in comfort.